Verizon Wireless To Buy Alltel?

Rumors are flying that the largest rural cell phone provider, Alltel, is being stalked by Verizon like an alley cat on a delicious plump mouse. Is it true? Maybe, but probably not. Even though both carriers are CDMA (T-mobile and Cingular are GSM, a different technology), it’s likely that the price of Alltel would be too much for Verizon, despite the fact that a merger between the two companies would make Verizon the nation’s largest provider. From ZDNET:

“Verizon has had a significant amount of success growing organically,” [an industry analyst] said. “I just don’t see any reason why they would need to buy Alltel. They can build their own network for a lot less than $30 billion.”

Nelson said, however, that he could see Verizon Wireless buying Alltel if the company fears it will lose the asset to a competitor.

Currently, Verizon leases space on Alltel’s network in order to provide coverage in rural areas. —MEGHANN MARCO

Is Verizon Wireless really looking to buy Alltel? [ZDNet]
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